News

Estrella Overseas Ltd. acquired by Everest Ventures Corp.

Estrella drilling rig (source: estrellasp.com)
Alexander Richter 24 Mar 2010

Estrella Overseas Ltd, a supplier of drilling rigs, products and technology services is being acquired by Everest Ventures Corp. Estrella has been drilling on a geothermal projects in the Chilean Andes.

In a release, “Everest Ventures Corp. (TSX VENTURE:EVE.P) announced that it has entered into a binding letter agreement (the “Estrella Agreement”) dated March 22, 2010, between itself and Estrella Overseas Limited (“Estrella”), a private British Virgin Islands company. Everest is pleased to report at the last minute this opportunity presented itself to Everest for us to complete our qualifying transaction. We are excited about the Estrella transaction and think this is an exceptional opportunity for our shareholders. We will now work diligently with Estrella to complete this transaction prior to June 20, 2010.

As previously announced by Cap-Ex Ventures Ltd. (“Cap-Ex”), Estrella and Cap-Ex have terminated their letter agreement dated February 17, 2010 as the parties were not able to enter into a definitive agreement before March 15, 2010.

Pursuant to the terms of the Estrella Agreement, the Corporation intends to complete a business combination with Estrella (the “Qualifying Transaction”) via the issuance of Everest securities for all of the issued and outstanding securities of Estrella. Upon closing of the Qualifying Transaction (the “Closing”), Estrella is expected to be a wholly owned subsidiary of the Corporation and the Corporation will change its name to Estrella Energy Services Ltd. (the “Resulting Issuer”).

The Qualifying Transaction is considered to be an Arm’s Length Qualifying Transaction, as such term is defined under the policies of the TSX Venture Exchange Inc. (the “Exchange”).
Estrella is a private oilfield services company with operations in Argentina, Chile, Colombia and Peru.

Estrella is a supplier of drilling rigs, products and technology services and systems to the Latin American oil and gas industry. It provides products and services for drilling, completion, workover and production of petroleum, geothermal and mining projects.

Estrella has over 250 employees, and in 2009, Estrella owned four rigs (one drilling and three workover) and operated or consulted on an additional four rigs (one heli-drilling, two drilling and one workover). These operations include the introduction of the first AC rig into the southern cone of South America, the operation of a directional drilling rig for the third largest potassium mine in the world, a 2,000 HP heli-rig in the Peruvian jungle and a drilling rig operating at an altitude of over 4,800 meters on a geothermal project in Chile.”

Source: Company release via Marketwire